Professor Gorkhmaz Imanov, Head of the Laboratory of Fuzzy Economy Models of the Institute of Control Systems (ICS) of the Ministry of Science and Education of the Republic of Azerbaijan, Corresponding Member of the Azerbaijan National Academy of Sciences, said this in an interview. The professor answered questions about fundamental research conducted this year in the laboratory he heads and the goals set for the development of Azerbaijan's economy.

 

The following is the full text of the interview:

 

Gorkhmaz muallim, what studies are conducted in your laboratory in accordance with the tasks arising from the Decree of the President of the Republic of Azerbaijan “Azerbaijan 2030: national priorities of socio-economic development” dated February 2, 2021?

 

I would like to note that for many years our laboratory has been successfully conducting research works on the basis of various decrees of the head of state aimed at the development of the socio-economic system of Azerbaijan. The main focus of our research conducted this year is exactly the diversification of Azerbaijan's economy, arising from the above-mentioned decree of the head of state. Our work is aimed at developing a fuzzy version of the economic diversification model.

 

As it is known, there are several models of economic diversification assessment known in the world. These models are mainly implemented using methods of mathematical statistics and certain results are achieved. However, since economic indicators are based on average numbers, there is a problem of uncertainty here, the solution of which requires the use of fuzzy sets and fuzzy logic. In this regard, we have created a fuzzy version of the Azerbaijan diversification model using fuzzy methods.

 

What are your main scientific results achieved in 2024?

 

An important scientific result we achieved this year is the calculation of the social quality index. Since the social quality index is a new concept in economic research, I would like to explain it a little bit.

 

The theory of social quality was first developed in Scandinavian countries and its solution methods were applied there. Social quality is an indicator for assessing the social results of economic activity, that is, since the main indicator in the economy is gross domestic product, the social quality index is used to calculate its results. The social quality index covers four main indicators: social protection, social unity, social participation and social inclusivity.

 

As I mentioned earlier, this year our lab has carried out calculations based on the above-mentioned indicators and obtained important scientific results in calculating the social quality inclusivity index. Our results were published in various prestigious journals, including the US-based journal Discovery Analytics.

 

Which of your scientific results have been successfully implemented into practice this year?

 

This is the second year we have been cooperating with the Baku International Sea Trade Port. Our work mainly consists in evaluating various transportation routes through Azerbaijan's economically advantageous corridors, which serve as a bridge between Europe and Asia and connect major international trade routes. That is, we proposed a special model to ensure transportation of cargoes from Azerbaijan in the northern and southern, eastern and western directions and evaluated the transportation routes on its basis. As I have already mentioned, the model we created is currently being successfully implemented at the Baku International Sea Trade Port.

 

What fundamental research is planned in your laboratory in the next year?

 

As you know, large-scale research based on artificial intelligence is currently underway to create a digital society. We are currently conducting research on the application of artificial intelligence methods in the management of socio-economic systems. In other words, here, in addition to the mathematical model, we are working on creating a new model system by adding fuzzy methods to the Language model and the Economic Agents model, which are currently widespread in the world. It seems to me that this could be one of the greatest achievements of our science in the future.

 

What is the impact of your research on “Fuzzy evaluation of sustainable level of economic diversification of a country” on the economic development of the country?

 

Economists working in this field can do important work to increase the level of diversification of Azerbaijan's economy by applying the results of the above-mentioned research. I should note that the methods I propose can be used to solve practical problems not only in Azerbaijan, but also on a global scale.

 

Do you have any research geared towards the Great Return to the liberated territories?

 

Unfortunately, at the moment there is no detailed socio-economic data on the territories liberated from occupation. In the future, it will be possible to create a new model based on the natural and human resources of these territories and to determine more precisely the directions of development of our liberated territories.

 

Thank you, Gorkhmaz muallim. And in conclusion, what would you recommend to young people interested in the socio-economic development of Azerbaijan?

 

My main recommendation is to make the right decisions using accurate tools of economic research. That is, I would wish them to grow up as more modern youth in the face of the Fourth Industrial Revolution taking place in the world and with the use of new methods arising from it - artificial intelligence, pattern recognition, various mathematical models and approaches. In my opinion, for this purpose it is necessary, first of all, to deeply assimilate mathematical knowledge, to study analytical methods and successfully realize their application in various spheres of society.

 

Interview by: Narmin Mammadova